Is NMDC overvalued or undervalued?

As of 16 July 2025, NMDC's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 9.22, an EV to EBITDA ratio of 6.69, and a PEG ratio of 0.64. In comparison to its peers, Coal India is rated very attractive with a PE of 6.73, while GMDC is considered very expensive with a PE of 17.59, highlighting NMDC's competitive positioning within the industry.
Despite the fair valuation, NMDC has shown mixed performance against the Sensex, with a year-to-date return of 4.03% compared to the Sensex's 5.75%. However, over a three-year period, NMDC has outperformed the Sensex with a return of 108.12% against 53.71%. This performance underscores the company's potential, but the current valuation suggests it is neither undervalued nor overvalued at this time.